Now that Republic Act 9136 (the Electric Power Industry Reform Act of 2001) is in place, will power rates go down?

Yes! Under Section 72 of RA 9136, the National Power Corporation (NPC) is mandated to reduce its rates for residential end-users by P0.30 per kilowatt-hour (kWh) upon the effectivity of the said law on June 26, 2001. On the same day, the Energy Regulatory Board (ERB) also approved ERB Resolution No. 2001-04, directing NPC "to reduce its regular rates to electric distribution utilities sourcing their power supply entirely from NPC by . . . THIRTY CENTAVOS (P0.30) per kWh". With the said resolution, NPC can now implement the mandatory rate reduction prescribed by RA 9136.

When will ordinary households actually see this 30-centavo rate reduction? Will this adjustment be reflected in their monthly electricity bills?

Apart from mandating lower power rates for residential users, Section 72 of RA 9136 also states: "Such reduction shall be reflected as a separate item in the consumer billing statement." This means that the 30-centavo rate reduction will appear as a separate line or item in your monthly electric bill, in exactly the same way as what you pay for the "Basic Charge" and for other adjustments. It will be reflected as " Power Act Reduction ".

ERB Resolution 2001-04 directs NPC to implement the rate reduction beginning on its billing period running from June 26 to July 25, 2001. Since there is at least a one-month time lag or difference between NPC's billing cycle and those of power distribution firms like the Manila Electric Company and electric cooperatives, the corresponding adjustment to residential end-users will be reflected in their electric bills for August, at the earliest. Some households on the other hand, in particular those sourcing their electricity from rural electric coops, will see the reduction in their September bills.

How long will households be able to enjoy this rate reduction?

Both RA 9136 and ERB Resolution 2001-04 are silent regarding the expiration of the power rate reduction. This means that NPC will extend the said reduction to residential end-users indefinitely.

How much will I be able to save with the 30-centavo reduction?

A typical household consumes about 200 kWh per month. Using simple multiplication, the mandated rate reduction should translate into monthly savings of about P60, and more, if your consumption is higher. This is however only true for the residential customers of power distributors / electric coops that buy electricity exclusively from NPC. According to ERB Resolution 2001-04, "for distribution utilities that obtain a portion of their power supply from sources other than NPC, the . . . rate reduction shall be proportionate to NPC's contribution to their power supply requirements".

For example: Utility "A" sources 100 percent of its demand from NPC. Therefore, it is supposed to pass on to its residential customers the 30-centavo rate reduction in full. Utility "B", on the other hand, sources only 50 percent of its demand from NPC, and the other 50 percent from an independent power producer. In such a case, the forthcoming rate reduction will only be applied to 50 percent of the utility's total consumption. Finally, Utility "C" does not buy its electricity supply from NPC at all. Because the reduction will emanate from NPC and Utility "C" does not buy even part of its demand from NPC, it will therefore be unable to pass on the mandated rate reduction to its residential customers.

How can I be sure that my distributor/electric coop will pass on the right rate reduction to me? What can I do in the event that my distributor gives me a smaller adjustment (or none at all) than what is due to me?

NPC and all of its utility-customers will be required to submit to the ERB a monthly report indicating their compliance to the mandated rate reduction. These reports will in turn be validated by the ERB, which is also empowered to impose sanctions (e.g., fines, penalties, revocation of operating permits) on non-complying utilities. There are also plans to create a Consumer Desk within the ERB, where residential end-users can directly bring their complaints.